Economic Policy Reform and Competitiveness Project (EPRC)
Chemonics
www.eprc–chemonics.biz
Trade Policy Support
Single Electronic Window (SEW) for Foreign Trade Facilitation and Zamiin Uud Trans-shipment Center: On 23 October 2008 the project made a presentation on the SEW to the Consultative Council on Investment Climate and Private Sector Development which is chaired by the GoM’s Prime Minister. Following the presentation the Prime Minister signed a resolution instructing the relevant government authorities to work towards organizing a separate company to develop the SEW. This company will take the form of a Public-Private Partnership to operate the SEW.
Zamyn Uud Gateway Logistics Park: In the same meeting of the Consultative Council on Investment Climate and Private Sector Development, private sector representatives made presentations on the pressing need to improve the road to rail transfer facilities at Zamiin Uud on the border with China. At the end of the meeting, the Prime Minister signed a resolution instructing the relevant government authorities to work with the Mongolia Freight Forwarders Association towards organizing a Public-Private Partnership (PPP) company to develop the Zamyn Uud Gateway Logistics Park, per the recommendation of the pre-feasibility analysis that the project recently completed.
Financial Markets Support
Corporate governance: The project supported the Financial Regulatory Commission, the Mongolian Stock Exchange and the Mongolian National Chamber of Commerce and Industry to organize the Mongolia Corporate Governance Forum on 8 Oct. 2008. Thirty-seven participants, including the Chief Executive Officers of large publicly traded joint-stock companies, attended the Forum which focused on current corporate governance practices and the importance of good corporate governance, transparency and disclosure for better access to finance. Following the presentations, EPRC, the CEO of Zoos Bank and the participants signed a Joint Declaration expressing their resolve to work towards establishing a Center for Development of Corporate Governance which will offer accredited training for members of the board of directors and executive managers.
Logistics Support
Zamyn Uud Gateway Logistics Park: The project completed a pre-feasibility study for the establishment of a Zamyn Uud Gateway Logistics Park. To implement and operate the Logistics Park, the study recommends that a PPP Logistics Park Development Corporation (LPDC) be established in which the Government of Mongolia (GoM) and Mongolian private sector freight and logistics sector stakeholders have shareholdings.
Under this scenario, the GoM would provide long-term land use rights for the Logistics Park site in return for a shareholding of about 25%; the private sector would provide development capital. Once established and capitalized the LPDC would conduct an international competitive tender for a logistics park management contractor to develop and manage the facility in accordance with international best practices. At the Mongolia Economic Policy Forum on 28 October 2008, the Minister of Finance publicly expressed the GoM intention to proceed with the EPRC recommendation. EPRC will assist the stakeholders to establish the PPP and develop the logistics park.
Business Development Support
Tourism promotion: During 21-25 October 2008, EPRC tourism advisor Indraa Bold participated in the Adventure Travel Trade Association (ATTA) World Summit in Norway as a guest speaker and participant in a panel discussion of destination marketing organizations. In her presentation Ms. Bold highlighted tourism circuits that were developed this summer during an EPRC inventory analysis of tourism products of five aimags of Western Mongolia.
The above presentation resulted in the start of negotiations with Earthwatch Institute to conduct a detailed study of bird species of Mongolia to develop ornithological tourism as one of the Western aimag tourism products and to undertake restoration of the cave paintings of Khoid Tsenheriin Agui in Khovd aimag to preserve the national cultural heritage for sustainable development of Western Mongolia. Also as a result of this event, the "Footprints" community-based projects initiative with the World Nomads has expressed interest to implement community level projects throughout Mongolia in order to enhance the livelihood of rural communities through tourism initiatives.
Energy Sector Support
Energy sector financial status: The project continues to assist the GoM’s Energy Regulatory Authority (ERA) in implementing the remaining tasks in the approved Tariff Reform Plan in accordance with the plan schedule.
Competitive electricity market design: The project delivered a draft report entitled "Proposed Competitive Electricity Market Design for Mongolia’s Central Energy System" to the ERA. The project prepared and made a presentation on the report to the ERA and the five largest energy entities. Response and support to date have been excellent. The project will make a presentation to industry stakeholders on 5 November to promote consensus on the high-level market design.
Development of the CHP #5 tender process and documents: The tender was issued via the Mongolian media on 1 August 2008. The date for submission of proposals was extended to 30 November 2008.
Consensus Building, Public Education, and National Dialogue Support
Due diligence and initial design of a communications strategy to promote national dialogue and consensus building on mining policy and issues: USAID has received a letter of request from the Ministry of Mineral Resources and Energy (MMRE) to have
EPRC assist with the development of a communications strategy in support of national dialogue and consensus building on mining sector policy and issues.
Initial due diligence that the project has conducted among key stakeholders shows a strong willingness to finalize agreements to amend the Minerals Law as a necessary step to conclude negotiations now going on for six years for the exploitation of large copper deposits. There is also an expressed need by MPs for a wider national consensus on mining issues that would include businesses and the larger civil society. In late August, the project, in collaboration with the MMRE, prepared and circulated a concept paper among MPs and political leaders to that effect. |
